prepaid-cardsGeneral purpose reloadable (GPR) prepaid cards (hereafter prepaid cards) look and work much like debit cards linked to traditional bank accounts. Prepaid cards can be used to make purchases, withdraw cash, and receive direct deposits. Consumer Reports latest review and ratings of prepaid cards found that consumers have many good choices for low-fee, high-feature prepaid cards:

However, there remain outstanding issues identified in our earlier surveys and still present today:

While all the prepaid cards in our survey voluntarily provide protections for users against issuer insolvency and unauthorized use, these voluntary protections are no substitute for mandatory federal protections. We urge the Consumer Financial Protection Bureau to extend the consumer protections outlined in the attached policy recommendations to prepaid cards. Consumers should consider the lack of mandatory legal protections when deciding whether to use a prepaid card.